When Architect Hen Degareg Bekele, in his early 30s, purchased a Volkswagen electric vehicle this year, he felt a degree of skepticism. His hometown, Addis Ababa, the capital of Ethiopia, faced not only frequent blackouts but also doubts regarding the vehicle’s quality.
Four months later, Degareg is pleased with his choice. He no longer has to endure long waits at gas stations due to the chronic fuel shortages in Ethiopia.
“Even if I arrive early in the morning, I still have to wait two to three hours. Often, they run out of gas before my turn comes,” he explains. “Owning an EV saves time. I have no regrets.”
Until recently, electric vehicles were nearly unheard of in Ethiopia. However, last year, it became the first nation to prohibit the import of combustion engine vehicles. Today, EVs can be seen frequently in the capital, with China’s BYD being the most prevalent brand. Despite its recent rise to become the world’s largest EV manufacturer, Western brands remain popular.
According to the Ministry of Transport, out of the country’s total of 1.5 million vehicles, around 115,000 are electric. The goal is to boost this number to 500,000 by 2030.
Ethiopia leans towards a shift to EVs, despite challenges. Close to half of the 126 million population lacks access to electricity, and only 20% have access at least 23 hours a day, with only a third connected to the grid. Frequent power outages hinder many factories from running efficiently.
These shortages are attributed to the Grand Ethiopian Renaissance Dam, which was completed earlier this month after 14 years of construction. With a maximum capacity of 5,150 megawatts, it aims to double Ethiopia’s current power generation, which is predominantly hydroelectric.
However, challenges persist, including the substantial costs involved in expanding electricity access to rural areas.
“Renewable energy has significant potential,” emphasizes Transport Minister Valeo Hassen, noting that the ban on fossil fuel vehicles aligns with Ethiopia’s green policies aimed at reducing urban pollution during peak hours.
The primary motivation, however, is economic. Ethiopia spends about $4.5 billion (£3.3 billion) annually on fuel imports, a considerable burden for a country struggling with foreign currency shortages and widespread poverty. “This is one of our main expenditures,” notes Bareo.
In contrast, the country’s hydroelectric production is notably cost-effective. This has allowed it to attract skeptical drivers in Addis Ababa, who have witnessed fuel prices more than double over the past three years.
Taxi driver Fire Tilahun reports his monthly fuel expenses were around 20,000 Ethiopian Birr (£105), while now, charging his EV costs less than 3,000 Birr.
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“I won’t go back,” he declares while charging at a new station in Addis Ababa. “Occasionally, there are power outages, but we manage.”
To further support EV adoption, Ethiopia implemented tax exemptions. Despite being expensive, in a nation where doctors average £60 monthly, the BYD model is priced at around 2.2 million Birr (£11,000). Meanwhile, combustion engine vehicles have skyrocketed in price due to 200% import taxes prior to the ban, distorting the used car market.
Efforts to foster local manufacturing are underway, albeit at a small scale. One notable site is managed by the Belayneh Kinde Group, an industrial conglomerate situated on the western outskirts of Addis Ababa.
“We should not rely solely on imports,” Valeo states. “Our aim is to develop local production capacity to enhance skills and employment opportunities for our citizens.”
Yet, the sudden shift to EVs has been uneven. Drivers express concerns over insufficient preparation time. Currently, Ethiopia boasts just over 100 charging stations out of a target of 2,300, most of which are located in Addis Ababa. This limits road trips to rural areas that often experience more frequent blackouts, making it impractical for EVs beyond the capital.
At another charging station in Addis Ababa, Coffee Export Manager remarks that he is “genuinely satisfied” with his BYD, but wishes he could drive to Hawassa, a favored lakeside destination.
“They must construct more charging stations – it’s essential,” he insists. “There are too few in Addis. There are no electric vehicles operating outside the city. This car can travel 420km; what happens after that?”
Moreover, there are currently no plans to introduce electric versions of heavy trucks, which are vital for transporting most of Ethiopia’s imports from nearby Djibouti ports. As the fleet ages, the economic impact may be felt significantly.
The CEO of a prominent ride-hailing company in Addis Ababa reports that most of his drivers harbor doubts about the longevity of EV batteries and their resale value. Nevertheless, he remains hopeful that after his personal experience with an EV, the infrastructure will evolve to meet the growing demand.
“Initially, we believed this policy would fail due to inadequacies in power infrastructure, frequent blackouts, and a scarcity of charging stations,” he reflects.
“But now, I am cautiously optimistic.”
Source: www.theguardian.com
